Apple supplier Foxconn reaches tentative agreement to build Fisker's next electric car

Foxconn Technology Company, an Apple supplier, has signed an initial deal with SPAC Fisker to produce and potentially assemble an EV distributed in North America, Europe, China and India.

Fisker and Foxconn said on Wednesday that they had signed a Memorandum of Understanding.

Discussions for both parties are scheduled to begin with the completion of a structured cooperation arrangement in the second quarter of this year.

According to the deal, Foxconn is to launch production of more than 250,000 vehicles in the fourth quarter of 2023.

The hybrid car is marketed by Fisker.

The company's vertically integrated global supply chain and acquired manufacturing skills are outlined by Foxconn Technology Group Chairman Young-way Liu and he notes the two key advantages in production and manufacture of the EV's key elements including electric motors, electric power and batteries.

Foxconn would have to make this supply chain and its capacity to scale engineering fast if it is to meet its production goal.

"The collaboration between our firms means that it will only take 24 months to produce the next Fisker vehicle — from research and development to production, reducing half of the traditional time required to bring a new vehicle to market," said Young-way Liu in a statement.

Fisker said the Ocean SUV — the first EV, and that the contract manufacturer Magna is expected to build — will commence production in the fourth quarter of 2022.

The company has said that it plans to unveil a version of the Ocean development attempt later this year.

This is not Foxconn's first foray into the manufacture of electric cars.

In January 2020, Foxconn announced that it had formed a joint venture with Fiat Chrysler Automobiles in China to develop electric cars.

In conjunction with this arrangement, each Party will own 50% of the project, which Foxconn parent company Hon Hai calls the "vehicle internet" business, to build and produce electric vehicles and engage with IOVs.

The Foxconn and the Zhejiang Geely Group of Chinese automakers decided last month to create a joint venture for contract-making for automakers, concentrating primarily on electrification, networking and autonomous driving and vehicles built to be shared.

The joint venture between Foxconn and Geely will provide manufacturers, as well as sharing firms, with consultancy services on whole cars, components, intelligent driving systems and other automotive ecosystem platforms.

Geely said he would bring his expertise in the automotive fields of architecture, engineering, R&D, intelligent manufacturing, supply chain management and quality control and Foxconn will bring his ICT-know-how.